Synergy Health reports strong performance in first half
Maintains a forward order book of £900m
The UK’s Synergy Health reported a higher first-half profit, driven by a strong performance in its sterilisation business.
Pre-tax profit for the six months to 2 October rose 11.1% to £16.6m on sales of £155.3m, up 11.9%.
The provider of sterilisation services reported good organic underlying revenue growth in all regions, supported by strong performance in both applied sterilisation (+14.8%) and hospital sterilisation (+12.1%), excluding currency effects.
Contracts worth £8.2m per annum have been won in the period, which together with a strong contract renewal rate have maintained a forward order book of £900m.
Synergy Health’s three recent acquisitions in Germany, Malaysia and the US have all been integrated well and are performing in line with expectations, the firm said.
A memorandum of understanding has been signed for a second hospital sterilisation facility in China, with a third likely to come to fruition “in the near term”.
Given the relative resilience of healthcare services and global medical device demand, the firm remains confident about the outlook for the remainder of the year.
“The year has started well with an improving organic growth rate supported by highly selective, bolt-on acquisitions,” said Synergy Health’s chief executive Richard Steeves.
“We continue to make good progress with our strategy of developing Synergy’s international presence in outsourced sterilisation services to hospitals and medical device manufacturers. The relatively resilient nature of the healthcare sector, our strong market position and barriers to entry, position us well to maintain growth.”